When total utility is at a maximum, marginal utility is:
a. increasing.
b. at a minimum.
c. equal to zero.
d. decreasing.
e. at a maximum.
c
You might also like to view...
Suppose it takes Dan 5 minutes to make a sandwich and 15 minutes to make a smoothie, and it takes Tracy 6 minutes to make a sandwich and 12 minutes to make a smoothie. Which of the following statements is correct?
A. Dan should specialize in both sandwiches and smoothies. B. Dan should specialize in smoothies, and Tracy should specialize in sandwiches. C. Dan should specialize in sandwiches, and Tracy should specialize in smoothies. D. Tracy should specialize in sandwiches and smoothies.
Countries that abandoned the gold standard early in the Great Depression suffered an average decline in production of 3 percent between 1929 and 1934
Countries that stayed on the gold standard until 1933 or later suffered an average decline in production of A) 12 percent. B) 18 percent. C) 24 percent. D) > 30 percent.
Refer to Figure 17-4. Which of the following is true if the wage rate increases from W1 to W2?
A) The substitution effect becomes larger than the income effect. B) The income effect becomes larger than the substitution effect. C) The supply curve is unit elastic. D) The income effect and the substitution effect are equal.
A supply shock that reduces labor productivity
A) causes accelerating inflation if the Fed attempts to maintain the original output level. B) will increase real wages if nominal wages are flexible. C) will reduce the level of output at the natural level of real GDP even if employment does not decline. D) A and C.